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Swiss mull creation of world’s top minimum wage

By WTOP Staff

JOHN HEILPRIN
Associated Press

GENEVA (AP) — In a nation of mostly haves and have-mores, Swiss voters head to the polls Sunday to decide on a union proposal that would create a new nationwide minimum wage at 22 Swiss francs ($24.70) an hour — the world’s highest.

But the proposal “to protect equitable pay” is only the most prominent of several referendums on the ballot: Others include a controversial plan to buy new Swedish-made Gripen fighter jets for the Swiss Air Force and to impose a lifelong ban against convicted pedophiles working with children.

Most attention is focusing on the push to set a minimum wage at 4,000 francs ($4,500) a month for those working a 42-hour week. The Swiss Trade Union Federation has based its proposal on 2010 figures when the median wage was almost 6,000 francs monthly.

The union submitted the referendum in 2012 in keeping with Switzerland’s tradition of direct democracy. Voters in the country who collect 100,000 signatures can force a binding referendum on any issue.

Groups representing Swiss employers are opposed to the plan to create a minimum wage that is more than three times the rate in the United States and more than double Germany’s current proposal for 8.50 euros ($11.64) per hour as of 2017. Opponents say it would tinker too much with the economy and hurt businesses by causing production costs to rise.

Switzerland’s seven-member Federal Council of ministers — which has relatively limited power over the 26 cantons (states) — doesn’t support the creation of a minimum wage.

“A legal minimum wage is a bad way to help people with low incomes,” the Council said in a statement. “There would be a high risk that jobs disappear … It would be a greater help to those affected by providing them with jobs and supporting them with tax breaks and social policy measures.”

Wages have to be high in the Alpine nation to keep up with what some surveys have found to be the world’s highest prices. However, there is now a growing scrutiny over who earns what following criticism of “fat cat” bosses.

There was particular outrage last year at the news that the outgoing chairman of Swiss drugmaker Novartis AG, Daniel Vasella, was to receive a leaving package worth 72 million francs. Vasella later said he would forego his deal.

Unia, a Swiss trade union with over 200,000 members, gathered activists and organizers beneath a statue of an immigrant in Geneva to argue that “the fight against poverty” must include fast-food workers and coffee chains.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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